External Factors That Can Affect Your Business

by Startacus Admin
While most business owners will spend their time concentrating on factors that they do hold direct control over, such as corporate strategy and employee recruitment, they seldom consider the external factors that can affect a business. While you may not be able to prevent these kinds of circumstances, you can take precautions that will ensure you’re better suited to dealing with them in the event they do occur.
Laws and Regulations
Government legislation and industry regulations are the kind of external forces that business owners will be most familiar with. For example, many businesses are only able to operate because of the ability to import cheap goods from emerging markets like China. If the government decided to impose an additional tax on these products as a measure to benefit local manufacturers, many business owners would have to rethink large parts of their supply chain strategy. Staying up-to-date on this subject by closely following industry news is the best way to prepare in advance.
External Competition
There’s no business in the world that doesn't face any kind of external competition. Even companies operating in niche industries will have to compete with similar product-makers or service providers. All of you have to compete for the customer’s money as, in many cases, most shoppers are only interested in owning one kind of a similar product. Lots of people will tell you that you needn’t worry about the competition and that you should instead simply focus on making your own products as good as it can be. The reality is that there has to be a balance between this and keeping up to date with what others are doing, though, as you don’t miss out on any technological advancements or other potential advantage.
Natural Disasters
Finally, dealing with natural disasters, like floods, landslides, or lightning, is an area that many business owners neglect. Fortunately, the UK is one of the least affected parts of the world when it comes to such events. This means that it's easy for people to take for granted the fact that such an event could never happen to you. As this report by Touch Financial shows, when they do occur they can cost business owners millions. Many insurance providers include additional cover for these kinds of incidents. This can include compensation if your earnings potential is reduced as well as a pay-out for any major structural damage that needs to be rebuilt.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Ensuring that employees feel like they're valued is vital for all businesses - here are some basic tips on how you can ensure that you do just that

The lowdown on Housemates, the Manchester-based startup that's on a mission to make securing student accommodation easier than ever before

Proximie is a platform that uses artificial intelligence, machine learning and augmented reality to enable clinicians to collaborate virtually

New research from Corporate Coach Group reveals the UK's most ambitious cities and includes top tips on how to make 2021 your best year ever when it comes to achieving your goals

The accolade this week goes to MyPlasticDiary, an innovative app which will enable you to track, understand and reduce your plastic footprint

The innovative Spanish startup raises major funding to scale its team and help more businesses design smarter automated conversations with customers

The lowdown on the Japanese robotics startup that has created Qoboo, a therapeutic robot in the form of a cushion with a tail

The EverLearner launches a GoFundMe campaign to help disadvantaged children in the UK who are struggling to complete their online learning

10 startups solving challenges the aerospace sector faces are selected for the latest ATI Boeing Accelerator. We took a look at the cohort

Whether you're recruiting for a small tech startup or a large well-established organisation, these tips will help you stay on top of your game
Published on: 6th January 2016
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Where are the UK’s most ambitious people in 2021? 21st Jan 2021 New research from Corporate Coach Group reveals the UK's most ambitious cities and includes top tips on how to make 2021 your best year ever when it comes to achieving your goals
- No-Code Chatbot Builder Landbot Secures $8M Series A 20th Jan 2021 The innovative Spanish startup raises major funding to scale its team and help more businesses design smarter automated conversations with customers
- Supporting disadvantaged children with their online learning 19th Jan 2021 The EverLearner launches a GoFundMe campaign to help disadvantaged children in the UK who are struggling to complete their online learning
- Insurtech startup, Nayms Closes £1.5m seed round 15th Jan 2021 Major seed investment secured by the innovative Insurtech startup Nayms to assist with developing further pilot programs and building its customer base